Capitalization of the UNPCB’s experience in institutional markets.

Summary of capitalization

Introduction

The issue of food security has a prominent place in the ECOWAS development agenda. The decision to create the RFSR at the 42nd Summit of Heads of State and Governments of the member countries reveals the importance attached to this issue. For stockpiling as part of the establishment of the RFSR, ECOWAS choose the institutional markets with a particular focus on the participation of PO.

RAAF call for tenders

In the first international cal for tender launched by the RAAF for the supply and delivery of 15,000 tonnes of cereals to RFSR, the UNPCB was one of the three successful tenderers. The UNPCB has – through a contract signed with the RAAF – contributed to the constitution of the first stock of the RFSR. This experience has particular interest since it concerns the experience of a PO executing a sub-regional contract resulting from an international call for tenders.

  • – How the UNPCB did it?
  • – What assets does the UNPCB have that allowed it to win this contract and run it to term?
  • – What are the major constraints encountered? And how did the UNPCB overcome them?
  • – What are the learning elements that could be drawn from it?

About UNPCB

The UNPCB, whose members produce cotton and cereals, is a peasant organization with nearly a decade of experience in institutional markets. Since 2008, this OP has been executing cereal supply and delivery contracts each year for the stockpiling of the SONAGESS. All of her experiences have allowed the UNPCF to access to the RAAF for the supply and delivery of 2,000 tonnes of millet to RFSR. From this experience, the factors that have contributed to the success of the UNPCB include the effective availability of stocks at the UNPCB level through the production system in place, the effectiveness of the mechanism for mobilizing stocks among members, existence of the technical commission responsible for monitoring the marketing of cereal surpluses which accompanies the technical team in the execution of the contracts, the facility of collaboration between the UNPCB and the financial institutions and the availability of the partners to support the UNPCB in the marketing of cereal surpluses. In terms of limiting factors, there is the inadequacy with the status of PO of certain parts required in the DAO, delays in the conduct of the process including the stages of counting offers and payment of invoices after execution; the reluctance of some institutional buyers to POs and the influence of cotton development on the marketing of cereals.

Lessons learned

The main lessons learned from the UNPCB experience are that it is important for PO to put in place effective mechanisms to access information related to tender documents; to prepare the offers in a participatory manner (consultation between members, elected officials and technicians), and make competitive and realistic offers; to ensure a high quality of products and to gain experience and to build an irreproachable reputation to the institutional markets even for the smalls PO.
Faced to the different constraints that impede the a good participation of PO in institutional markets various recommendations have been formulated and relate, on the one hand, to initiatives aimed to improve the dissemination of information on call for tenders and also, to the facilitation of procedures and the execution of contracts.

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